Circle Partners With Cross River Bank, Handful of US ‘Crypto-Friendly’ Banks Remain; Okcoin Suspends USD Deposits

Circle Partners With Cross River Bank, Handful of US "Crypto-Friendly" Banks Remain; Okcoin Suspends USD Deposits

Circle Financial, the issuer of the stablecoin USDC, is partnering with Cross River Bank after its former settlement partner, Signature Bank, was closed by New York regulators, according to a statement from CEO Jeremy Allaire. “The 1:1 redeemability of all USDC in circulation is of paramount importance to Circle,” Allaire emphasized. Crypto Firms Scramble for New Banking Partners in the United States

Circle Financial has announced a new banking partner following the depegging of its stablecoin, usd coin (USDC), from the U.S. dollar over the weekend. CEO Jeremy Allaire said in a statement on Sunday evening that more than $3 billion in funds that were previously stuck in Silicon Valley Bank (SVB) would now be accessible thanks to the federal bailout announced by the U.S. central bank and Treasury. USDC regained parity with the U.S. dollar, or came very close to it, roughly 45 minutes after the U.S. Federal Reserve announced that all depositors from SVB and Signature Bank would be made whole.

Circle CEO Jeremy Allaire’s announcement said that the company is working with a new banking partner and that Circle’s USDC operations will open for business on Monday morning, with new automated settlement via Cross River Bank. Despite the closures of Silvergate Bank, Silicon Valley Bank (SVB), and Signature Bank, some U.S. crypto businesses still have banking partners, according to Larry Cermak, head of research and data at The Block. He noted that there are only a small number of so-called crypto-friendly banks available today.

Cermak listed a number of banks that are considered friendly to the crypto industry, including Customers Bank, First Foundation Bank, Sutton Bank, Evolve Bank & Trust, Bankprov, Quontic Bank, and Cross River Bank. There are rumors that Coinbase, a popular crypto exchange, is also leveraging Cross River Bank as a banking partner. However, the situation has not been smooth for everyone, as Okcoin’s U.S. exchange had to suspend U.S. dollar deposits and over-the-counter services due to issues with its former primary USD bank, Signature Bank. Okcoin President Hong Fang confirmed the suspension and explained that the exchange was working to find a new banking partner.

Okcoin has suspended U.S. dollar ACH and wire transfers, but Okcoin President Hong Fang has assured the public that “all corporate and customer funds are safe.” The scramble for new banking partners by crypto companies comes after the Federal Deposit Insurance Corporation (FDIC) transformed Signature Bank and Silicon Valley Bank (SVB) into bridge banks. On Monday morning, U.S. president Joe Biden reassured the nation that America’s “banking system is safe” and that “your deposits will be there when you need them.”

Meanwhile, reports say that trading has been halted for multiple U.S. banks when stocks opened on Monday. Tags in this story ACH, banking partner, banking partners, Banking system, Bankprov, bridge banks, Circle Financial, Coinbase, corporate funds, Cross River Bank, crypto industry, crypto-friendly banks, Customer Funds, Customers Bank, deposits, Evolve Bank & Trust, FDIC, federal bailout, First Foundation Bank, Jeremy Allaire, Joe Biden, Larry Cermak, nation, new banking partners, OKcoin, Parity, Quontic bank, Reassurance, scramble, Signature Bank, Silicon Valley Bank, Stablecoin, Sutton Bank, U.S. exchange, U.S. Federal Reserve, U.S. president, US Dollar, USD, USDC, wire transfers

What do you think the future holds for cryptocurrency companies and their banking partnerships in the ever-evolving financial landscape? Share your thoughts in the comments section below. Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today. Bank Board Member and Dodd-Frank Co-Sponsor Barney Frank Suspects "Anti-Crypto" Message Behind Signature Bank Failure NEWS | 32 mins ago Binance Converts $1 Billion BUSD Into Bitcoin, BNB, and Ethereum NEWS | 6 hours ago

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleStablecoin Trading Dominates Monday’s Crypto Market, Tether and BUSD Sell at Premiums Next articleBank Board Member and Dodd-Frank Co-Sponsor Barney Frank Suspects ‘Anti-Crypto’ Message Behind Signature Bank Failure Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItOman to Incorporate Real Estate Tokenization in Virtual Assets Regulatory Framework

Real estate tokenization is set to be incorporated into Oman Capital Markets Authority (OCMA)"s virtual asset regulatory framework. According to an advisor with the authority, the tokenizing of real estate will open investment opportunities for local and foreign investors. Real ... read more.Following a Brief Fee Spike, Gas Prices to Move Ethereum Drop 76% in 12 Days Draft Law Regulating Aspects of Crypto Taxation Submitted to Russian Parliament FBI Issues Alert Concerning Malicious State-Sponsored North Korean Hackers Targeting Crypto Firms Ethereum Foundation"s Financial Report Discloses It Holds $1.6 Billion in Assets, 80.5% Held in Ether